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BUSINESS IN BRIEF 15/8
Creating
a new wave of investment from
Local
entrepreneurs are expected to forge enduring links with Japanese businesses
during the 2013 Vietnam- Japan Investment Cooperation Economic Forum,
scheduled for August 20–22 in
The
event—organized by the Ministry of Construction, the Japanese Embassy in
At the
forum, local businesses, organizations and administration representatives
exchange information and discuss plans for cooperation with Japanese partners
in the coming period.
The
focus of discussion will be on how to create a new wave of Japanese
investment in key areas such as infrastructure, real estate, and support
industry.
Vietnamese
officials will introduce a host of preferential policies for Japanese
businesses to invest in localities across the country.
Provincial
and municipal Vietnamese leaders will be able to pitch their localities’
particular advantages to Japanese organizations, enterprises, and investors
face to face.
Renewing
procedures for FDI attraction
The
amount of FDI in
Over
the past three decades FDI loans have proved very useful for
Now
it’s high time to improve the local investment environment, but not all
authorities are fully aware of the need to attract FDI.
At a
recent Cabinet meeting, Prime Minister Nguyen Tan Dung made it clear that
Promoting
Vietnam-Thailand trade cooperation
Vietnamese
and Thai businesses should strengthen cooperation, expand production, and
meet the growing demand of 600 million consumers in the ASEAN market.
The
Thai Embassy’s Trade Counsellor to Vietnam Busaba Butrat says most of ASEAN
countries rely on the exchange of goods.
The
Thai Trade Office in
It has
also encouraged both Thai and Vietnamese businesses to achieve deeper
integration into the regional economy.
Thai
Ambassador to Vientam Anuson Chivanno says the 2015 ASEAN Economic Community
(AEC) will present new economic opportunities and challenges facing the bloc.
He
says the Thai Foreign Ministry’s Department of International Trade Promotion
is responsible for sponsoring the 2015 AEC event.
For
its part,
One of
them scheduled for August 15–18 in
Busaba
Butrat says the two-way trade turnover between
Thailand’s
imports of Vietnamese products rose 47 percent in 2012 and more than 40
percent in the first few months of this year while Vietnam’s imports of Thai
products increased by some 30 percent.
Bilateral
trade value is expected to hit US$20 billion in 2015, she adds with strong
belief in the bright prospects for mutually beneficial cooperation in the
fields of agriculture, footwear, civil electricity, and food processing.
US
imposes import duty on Vietnamese shrimp
The US
Department of Commerce (DoC) on August 13 announced it was introducing a 7.9
percent anti-subsidy duty on frozen shrimp imported from
The
department also imposed duties on shrimp imports from
According
to statistics, these five nations exported 208,000 tonnes of frozen shrimp,
worth 1.7 billion USD, to the
The
decision to impose the new duties will only take effect when it gets approval
from the US International Trade Commission (ITC) and ballots will be cast on
September 19.
Following
petitions from US shrimp producers and the Coalition of Gulf Shrimp
Industries, the DoC investigated shrimp countervailing from the five
countries, along with major suppliers
Agricultural
support project reaches
An
agricultural competition project (ACP) funded by the World Bank has passed
the halfway point and is making a positive impact in seven Mekong Delta
provinces.
Support
activities for farmers launched by the project, which began in October 2012
and will run until June 2014, include technical training in rice production
processes, building rice stockpiles and provision of agricultural machines
such as rice dryers and combine harvesters.
The
two agricultural cooperatives of Tan Cuong and Tan Binh in Dong Thap province
has received support from the project worth 20 billion VND (950,000 USD).
The
combine harvesters will help farmers in the cooperatives improve their grain
quality and increase production efficiency.
Deals
worth 17 bln VND inked at EWEC fair
Deals
worth over 17.2 billion VND were made at the 2013 International East-West
Economic Corridor (EWEC) Trade and Tourism Fair, which wrapped up in central
The
fair welcomed nearly 150,000 visitors, offering them an excellent chance to
explore a variety of tourism products and services and goods showcased by
enterprises from
It
also encompassed two conferences on trade and investment promotion and an
exchange programme for the participating enterprises of
Phu
Quoc development targeted
Preparations
to transform Phu Quoc island district into a special administrative-economic
zone have been discussed at a working session between the Party Central
Committee’s Economic Commission and the authorities of the southern
Specific
details about the proposed zone, including its special mechanism, were also
tabled at the event, which took place in Phu Quoc island district on August
13 during the on-going working visit by a commission delegation led by its
deputy head Nguyen Xuan Cuong.
Cuong
acknowledged proposals made by Kien Giang province and the Southwestern
Region Steering Committee regarding the project, asking the provincial
authorities to speed up the progress of turning Phu Quoc into a second-class
city and a special economic zone.
Situated
in the centre of
According
to a master plan on Kien Giang socio-economic development by 2020, Phu Quoc
island will become a special administrative-economic zone by the end of this
decade with its role as a national and international hi-end ecotourism and
entertainment centre and a regional financial hub.
It
will also act as a national and regional forest and sea biodiversity
conservation centre that holds a special position in security and national defence.
The
island posts an annual economic growth rate of over 24.5 percent, a 5.2-fold
increase from 2004 when the Prime Minister approved its overall development
plan. Its per capita income in 2013 is estimated to reach 70.3 million VND
(3,500 USD).
Phu
Quoc has so far attracted 206 investment projects valued at over 4 trillion
VND (190.5 million USD). Of the total, 13 projects have already been put into
operation.
Work
has been completed on major infrastructure projects, including Phu Quoc
international airport, An Thoi international seaport and Duong Dong port. The
major transport axis connecting the island’s northern and southern sections
is currently under construction.
Money
supply rises 5.3% in H1
The
country's total money supply in the past five months of the year rose 5.3 per
cent against December last year to reach VND3.899 trillion (US$181.34
million), according to the State Bank of Viet Nam.
The
figure was also 3.88 per cent higher than the same period last year.
Of
this amount, deposits made by economic institutions at the end of May
increased 2.54 per cent against the 3.58 per cent decrease in the same period
last year.
Deposits
made by individuals rose 14.26 per cent, down from 15.99 per cent in the same
period last year.
The
proportion of cash in circulation has fallen sharply to 11.43 per cent from
13.71 per cent at the beginning of the year.
Total
outstanding loans for the whole banking system at the end of May were
estimated to have grown 3.13 per cent from last December to nearly VND3.188
trillion ($148.27 million).
Of
this figure, outstanding credit to industrial and construction sectors made
up the largest proportion, with lending for agriculture, forestry and
aquaculture saw the fastest growth of 9.18 per cent.
By the
end of May, the ratio had crept down to 4.65 per cent from 4.67 per cent a
month earlier. The ratio of non-performing loans by credit institutions in
the past year remains above 4 per cent, as the central bank released the data
in June 2012.
Ha
Noi to host financial supervision talks
The
10th Viet Nam Finance 2013 Conference and Exhibition will take place in Ha
Noi on August 27, as heard at a press conference on Monday.
The
headline theme of the conference is "Reinforcing national financial supervision:
Policy and Technology initiatives" and is a joint collaboration between
the Ministry of Finance and the International Data Group (IDG).
The
conference will review current measures for financial supervision and the
development of the national system in securing the financial sector and
economic development.
It
will also provide a platform for new policies, initiatives and advanced
technologies to be applied in financial supervision.
Support
industries must fight harder to compete
They
said that local spare parts manufacturers should focus more on improving
product quality to meet the demand of foreign companies in
The
ASEAN Economic Community, which is expected to come into being in 2015, will
open new markets and channels of distribution, and create more opportunities
for intra-ASEAN sourcing of goods and raw materials.
Therefore,
if
To
stay competitive, local companies must also invest in modern technology, he
said.
Exhibition
and trade shows should be seen as opportunities for local parts producers to
update their technologies as well as their management capacities to sharpen
their competitive edge, he said.
To
this end, domestic producers should participate in the Viet Nam Manufacturing
Expo in Ha Noi and the Metalex Viet Nam 2013 in
Participation
in these exhibitions will enable local businesses increase product quality to
better meet strict standards of foreign manufacturers and introduce products
to foreign clients. It will also enable foreign buyers to discover reliable
parts producers, he said.
One of
the co-organisers, the Japan External Trade Organisation (JETRO), will invite
at least 50 local manufacturers to join the show.
At the
Viet Nam Manufacturing Expo in Ha Noi, held from September 4-6, a delegation
of 400 Japanese manufacturers will seek business partners. This is the
biggest Japanese business group to visit an exhibition in
The
exhibition will also see the ASEAN debut of Murata Boy, a pint-sized,
self-balancing, bike-riding robot.
At the
Metalex 2013 show this October in
The
exhibition will have nine national pavilions including Viet Nam, Japan, South
Korea, mainland China, Thailand, India, Taiwan and Germany; as well as a
"Star Pavilion" where eight leading foreign brands will exhibit
"high quality, the most advanced technology that is also most suitable
for local manufacturers."
Apart
from the trading section, engineering master classes will be held where
"gurus" will teach local firms some new things and give tips on
enhancing product quality, he said.
Co-organised
by Reed Tradex, Jetro and the trade promotion centres, in Ha Noi and
ACB's
Kien manipulated legal loopholes
The
People's Police newspaper has outlined how banking tycoon Nguyen Duc Kien
took advantage of loopholes and was powerful enough to direct both the
chairman and general director of the Asia Commercial Bank, despite not being
on the bank's management board.
The
article came after in the case, saying Kien contributed a huge amount of
capital to ACB and became a major shareholder in 1993. He then took the
position of Deputy Chairman of the bank's Management Board from 1994 to 2008.
Possessing
good knowledge of finance and banking operations as well as legal loopholes,
he was fully aware of Vietnamese regulations that would limit the amount he
could loan ACB, as well as the ramifications if he retained cross ownership
in other commercial banks and private businesses while remaining a board
member. He found a way to increase his power over the bank.
Kien
withdrew from ACB's management board and then established five companies
including Asia Financial Group Joint-Stock Company (AFG), ACB Investment JSC
(ACBI), Aci-Hanoi Co Ltd (ACI-HN) and B&B Joint Stock Company (B&B).
Within the firms, he played the role of management board chairman on four
companies - B&B, AFG, ACBI and ACI – as well as Chairman of ACI-HN's
Members Council.
To
retain his influence and keep power so that he could direct ACB operations,
Kien asked the management board to establish the bank's founder council and
approve its working regulation before he withdrew.
In
fact, this council was not under the organisational structure of a bank and
was not recognised by law. It was merely a way for Kien to take advantage of
legal loopholes.
The
investigation agency showed that although these companies were not licensed
to conduct financial business, Kien directed them to use more than VND9.7
trillion (US$462 million) mobilised and collected from their sales of bonds.
To
raise ACB's share value, Kien and members of ACB's management board poured
funds into ACB Securities Company (ACBS), which ACB bank owned 100 percent of
equity, to buy ACB's shares.
The
ACB provided VND1.5 trillion ($71.4 million) in funds for ACBS. ACBS then
transferred the amount, along with its owner equity to ACI and ACI-HN with
total sums of nearly VND1.56 trillion to buy more than 52.5 million ACB
shares, causing ACB a loss of more than VND1.4 trillion.
According
to the investigation agency, Kien also directed 19 ACB staff members to send
nearly VND719 billion ($34.2 million) to VietinBank, which had then been
usurped by former deputy manager of Risk Management Department of VietinBank
branch in HCM City Huynh Thi Huyen Nhu and her accomplices.
The
investigation has now concluded and Kien plus his seven accomplices were
referred to the Supreme People's Procuracy of Viet Nam. Their imminent court
date has to be announced.
The
system, including three stations and 150km of gas pipes, will cost around
US$3.4 million. It will provide liquefied petroleum gas, synthetic natural
gas, compressed natural gas and natural gas from 2016.
Deputy
chairman of the city's people committee Nguyen Ngoc Tuan said the system
would reduce the consumption of gasoline, oil, coal and electricity.
Ministry
of Transport agrees on new road
The
Directorate for Roads of Viet Nam has been assigned to plan for a new road
via My Dinh, Ba Sao and Bao Dinh.
The
78km road will pass through the northern cities and provinces of Ha Noi, Ha
It
will have four lanes for vehicles traveling at up to 100kph.
The
most economical approach will cost VND3.4 trillion (US$161.9 million) but it
would require land from the Van Long nature reserve. The other option will
cost VND4.3 trillion ($204.7 million).
Business
space prioritised for resettled people
Underneath
the stairs, Nguyen Que Lam, 53, hastily packs up plastic chairs, a wooden
table and cups in fact his whole lemon tea shop, when he sees his building's
management officers on patrol.
He
said no-one is allowed to sell products in any public space around the
building, including stairs, balconies or playgrounds. However, "we could
not earn a living if we obeyed the regulations."
His
family of six used to live in a house at the junction of Vinh Tuy-Minh Khai
where he ran a small hamburger outlet, serving passengers using the city's
buses, he said.
His
income was adequate for his family to survive on for many years until his
land was acquired for a public project in 2005. He was then allocated an
apartment on the 6th floor of the Den Lu 2 Resettlement Building, he said.
"Our
fishing rod was confiscated."
Hundreds
of other households found themselves in Lam's shoes when they were shifted to
city resettlement buildings such as Trung Hoa- Nhan Chinh, Nam Trung Yen, Den
Lu and My Dinh.
There,
they take advantage of the public space in these buildings to sell various
kinds of vegetables, meat and foodstuffs.
However,
this situation is expected to end soon as the Ministry of Construction is
about to introduce a regulation that prioritises resettled households so they
can rent space for their business activities.
Construction
Minister Trinh Dinh Dung said that the new draft regulation on the management
of resettlement buildings states that households that are resettled for
public projects will be allowed to rent space in their new residential areas
at a reasonable price.
The
minister explained this was due to many of them having been the former owners
of restaurants or shops or even landlords, thanks to the excellent locations
of their city centre houses. As a result, they have found it difficult to
earn a living after they were moved.
The
investors in resettlement buildings will be asked to allocate two thirds of a
buildings' retail business area to rent to resettled households, after
auction.
The
bids will be held publicly and transparently.
In
commercial buildings that includes resettled households and investors must
now prioritise them when it comes to renting business space, even if they bid
the same price as outsiders.
The
ministry has also ruled that when a resettlement building is first set up, it
is necessary to ensure that these households have an equal standard of living
and the ability to earn just as good a living as they did when in their
former homes.
Pham
Sy Liem, vice president of the Viet Nam Federation of Civil Engineering Associations,
said that there should be a management mechanism to enable residents to make
a living.
If
not, they have to utilise unused public space to do business. This was also
one of the reasons that resettlement buildings quickly deteriorated, he
explained.
Lam
said that this regulation would help their lives to stabilise and prevent
them from breaking public space regulations.
He
added that he hoped the rent would be appropriate for them.
FAO
supports
The UN
Food and Agriculture Organisation (FAO) will continue supporting the
establishment of a rice seed production hub in central
The
news was announced by FAO representative Bae Jong-ha at a meeting with the
city officials yesterday.
He
said FAO will help develop the centre in Hoa Tien commune as a major rice
variety centre for the city and the central coastal region.
The
project will help strengthen the production capacity of the commune and
increase its ability to expand its market.
The
project, which has been supported by the India-Brazil-South Africa Dialogue
Forum (IBSA) Fund for four crops during 2012-14 with a total budget of
US$529,000, will be put into operation from next month.
Banks
continue cutting staff salaries amid economic difficulties
Both
small and big banks have continued slashing salaries and bonuses for their
staff due to their loss-making in the context of the current economic
difficulties which are affecting their operations.
Asia
Commercial Bank (ACB) spent only VND597.7 billion (USD28.4 million) on salaries
and bonuses for their staff in the first half of this year, down 30% from the
same period of 2012.
During
this year-long period, the bank posted a pre-tax profit of VND943.7 billion
(USD44.9 million), fulfilling only 52.4% of the year’s target of VND1.8
trillion (USD85.72 million). Meanwhile, the bank’s bad debt rate has
continued rising and is now at 2.97%, compared to 2.46% earlier this
year.
Nam
Viet Commercial Joint Stock Bank, which reported a loss of VND11.3 billion
(USD538,095) in the second quarter of 2013, cut its salary fund to a mere
VND84.93 billion (USD4.1 million) by late June this year from VND128.78
billion (USD6..1 million) a year ago, equal to a fall of 34%.
According
to the second-quarter financial report of An Binh Commercial Joint Stock
Bank, the bank cut 5.8% of its spending on salary and bonuses to VND167.4
billion (USD7.9 million) in the first half this year.
A big
bank headquartered in
Besides
slashing salaries, banks have tended to recruit more business
contributors to lower its human resources costs. Unlike official staff
members, these contributors are not provided with fixed salary, but rather
just a very small salary ; instead, they are paid according to their
contributions, such as the number of customers they attract for banks.
Contributors
are required to have passed high-school graduation exams and be aged below
50. In some cases, though, they are not limited by their age.
New
rules give greater investor security
Investors
will have greater protection under the new circular, which aims to crack down
on securities-related crimes, including the willful provision of misleading
information, the concealment of factual information in securities trading,
insider trading and stock price manipulation.—Photo vinacorp
The
circular is a joint effort between the Ministry of Justice, the Ministry of
Public Security, the Supreme People's Court, the Supreme People's Procuracy
and the Ministry of Finance.
Investors
will have greater protection under the new circular, which aims to crack down
on securities-related crimes, including the willful provision of misleading
information, the concealment of factual information in securities trading,
insider trading and stock price manipulation.
Damages
to investors upwards of VND1 billion (US$47,100) and gains from insider
trading of more than VND500 million ($23,550) will be punishable under the
act.
Additionally,
the circular aims to punish ‘intangible' losses to the stock market,
including the disruption of the State's implementation of policies, losses in
investor confidence and the creation of unfair advantages, which will be
considered aggravating factors.
Crimes
will be categorized as "serious", "very serious" and
"extremely serious" misconduct under the law, depending on the
damages inflicted.
"Serious"
charges will be laid against those causing VND1 billion losses to investors
with "very serious" charges put to those exceeding VND3 billion
($141,500) in damages.
The
regulations aim to keep pace with securities-related crime which has evolved
rapidly in recent years. The Government is hoping the new law will restore
market discipline and investor confidence.
The
unveiling comes amid rumours from private investors the Chairman of the Bank
for Investment and Development of Vietnam, Tran Bac Ha, had been arrested on
February 21.
The
market fell VND29 trillion ($1.3 billion) in just a single session, while
stock indices fell 3-5 per cent.
Last
year, the State Securities Commission issued 180 penalties to individuals and
investors totaling fines of VND11 billion ($518,800). The penalties were
described as an ineffective deterrent for white collar criminals.
The
announcement was made by Ho Quoc Khanh, Manager of the Trading Management
Division under the Hanoi Department of Industry and Trade, at a recent
conference in the capital city.
The
stabilisation programme will focus on seven essential commodities including
vegetables, meat, eggs and aquatic products. Stockpiled commodities such as
sugar, processed food and notebooks will be excluded from the programme.
Local
firms were also encouraged to use their own capital to balance supply and
demand and stabilise prices.
Enterprises
which participate in the stabilisation programme will need to align prices
with the city's Department of Finance. Price increases can only be granted by
the municipal finance department and industry and trade department, with
adjustments within 10% of the market price.
The
programme aims to give priority to industrial zones, low-income residential
areas and canteens and hopes to provide consumers with clean, high-quality
food.
Plans
are underway for 38 Vietnamese Fairs to be held in suburban districts and for
400 mobile food outlets to provide subsidised food to local customers.
ASEAN-wide
recognition of tourism professionalism
The
agreement, due to take effect in 2015, allows accredited tourism industry
professionals in one country to seek employment in other ASEAN member
nations.
It
will help
The
VNAT developed a guide book to implement the agreement with support from an
EU-funded project. The manual was adopted at the 2013 ASEAN Tourism
Ministerial Meeting in
It has
also prepared electronic documents and internet resources to help answer any
questions arising from the MRA.
Uniform
professionalism standards applied across the ASEAN region will assist each
member nation improve the quality of its tourism services and the skills of
its workers.
Staff
who have attained Vietnam Tourism Occupational Skills Standards (VTOS)
certificates will also be qualified under the equivalent ASEAN Common
Competency Standards for Tourism Professionals (ACCSTP).
Lecturers
and industry training centres should review their curricula to reflect the
VTOS and ACCSTP interchangeability.
Auto
sales decline in July
The
Vietnam Automobile Manufacturers’ Association (VAMA) reports the domestic
auto industry’s 9,360 units sold in July represents a 3% slide from the
previous month’s figures.
Complete
Knock-Down (CKD) vehicle sales reached 7,676 units in July, a 3% rise over
June levels, but the increase could not compensate for the sharp 24% drop
in,Completely Built Unit (CBU) sales to 1,684 units. The decrease is markedly
different from the previous four months’ upward trend.
VAMA
members sold 8,209 vehicles in July, maintaining the levels of the preceding
three months and equalling a year-on-year increase of 23%. About 2,200
Multi-Purpose Vehicles were sold, 20% more than in June and 45% more than in
July 2012.
The
VAMA highlighted the two agents Vinacomin-Vinacoal and Vinaxuki reported zero
sales in July.
Impressive
sales surges were reported by
The
seven month total of 59,197 units sold is 18% higher than its 2012
equivalent. The VAMA expects to sell 110,000–112,000 units by the end of this
year.
Seminar
discusses M&A strategy
A
seminar was held in
The
General Director of Denscombe Corp, Professor Nigel Denscombe emphasized that
the M&A strategy will be the best option for the Vietnamese market in its
initial stage to make breakthroughs in economic growth.
Professor
Nigel Denscombe advised that businesses should devise a clear strategy and
orientations before making M&A deals.
The
Deputy Director of the PetroVietnam Securities Incorporated, Marc Djandji,
said that businesses should be ready for M&A deals, especially in the
ASEAN region.
He
added that the Southeast Asian market has become an attractive destination
for businesses to carry out the M&A strategy. Foreign investment capital
will continue to flow into
The
value of M&A in the Southeast Asian nations reached US$90 billion last
year, making up 4 percent of the world’s total M&A deals and 20 percent
of
The
value of M&A deals in
The
Japan Business Association (JBA) has pledged to provide human resource
training for
The
MoU was signed by representatives of the Ministry of Labour, Invalids and
Social Affairs, Ministry of Education and Training and Ministry of Industry
and Trade, and the JBA, within the framework of the Vietnam-Japan Joint
Initiative’s phase V.
It
will allow relevant agencies to tailor their labour force strategies and
encourage Japanese investors to
Vietnamese
labourers working for Japanese businesses can learn Japanese language skills
and management techniques.
The
MOU will be implemented from July 2013 to December 2014.
Witnessed
the signing ceremony, Deputy Prime Minister Nguyen Thien Nhan confirmed that
Japan is Vietnam’s key strategic partnership, and he hoped bilateral
cooperation will expand to the areas of culture, education,
science-technology, alongside politics and economics.
Nhan
highlighted
He
asked the MoU signatories to meet every six months to review progress and
report the result to the government.
Market
officers target suspect milk
Market
officers are attempting to shore up regulations preventing substandard milk
from entering
According
to Do Thanh Lam, deputy head of the Market Surveillance Agency under the
Ministry of Industry and Trade, the agency dealt with about 13,000 cases
annually, related to fake and substandard goods.
The
ministry has also recently established a mobile market management team to
ramp up inspection and and catch violations related to commercial products
and activities.
Lam
said it was difficult to monitor the quality of substandard imported goods
entering the country as carry-on items.
A
report from the ministry suggested that the domestic milk market had grown
between 7 and 8 per cent annually and that total production volume had
reached approximately 47 thousand tonnes for the first seven months of this year.
However,
domestic fresh milk was meeting only 30 per cent of local demand.
Do Kim
Lang, deputy head of the Viet Nam Trade Promotion, said the agency was also
keeping an eye on discount activities of Abbott Viet
Lang said
that it was difficult to coordinate between market management watchers under
the authority of local administrations with ministerial market watchers.
He
added that smuggling and substandard products from overseas were infiltrating
Banks'
credit target remains within reach
With
banks managing to increase credit in recent months, the year's growth target
is appearing within reach.
According
to a report tabled at a regular Cabinet meeting last month, as of July 25
credit growth had risen to 5.02 per cent, much higher than the 1.2 per cent
increase in the same period last year.
But
the year had started slowly, with growth at only 2.98 per cent after five
months.
The
quick surge in recent times has partly been due to a fall in interest rates
from 11-12 per cent a year to 7-9 per cent, according to experts.
Besides,
the State Bank of
In
addition to a VND30 trillion (US$1.43 billion) credit package aimed at home
buyers and property developers, the central bank has also launched lending
packages for priority sectors like coffee.
It has
been working to help set up the Viet Nam Asset Management Company, which will
buy bad debts from banks.
As a
result, credit growth at many banks has even surpassed the limits fixed by
SBV, and they been forced to seek the central bank's approval for this.
SBV
recently allowed MBB and NamA Bank to raise this year's lending growth cap to
20 per cent and 30 per cent respectively from the earlier 9 per cent.
Many
banks, on SBV's instructions, have cut loan interest rates.
Techcombank,
for instance, has unveiled a preferential lending programme with an 8.5 per
cent interest rate for companies.
HDBank
has earmarked VND1 trillion ($47.34 million) for preferential loans to
individuals, business households, and private enterprises this year.
Borrowers
of VND500 million and more will enjoy zero interest for the first month and
be charged 11.86 per cent for the next 11 months.
For
loans of VND200-500 million, the rate will be zero and 12.86 per cent.
Kieu
Phuong, chief accountant at Ninh Binh Nitrogenous Fertilizer Company, said
the lower lending interest rates would help the company optimise its
operations.
A top
official at Viet Duc Steel Joint Stock Company said Techcombank's
preferential credit programme is good news for the company.
But
many experts remain sceptical about the banking sector meeting the growth
target.
Lending
interest rates are unlikely to be cut further, so credit growth in the
remaining months would not be a function of interest rates or liquidity, but
of credit demand, they said.
The
demand depends on economic growth and recovery by the manufacturing and
services sectors, they added.
Firms
brace for
Vietnamese
businesses will have a major opportunity to crack
The
South American powerhouse is set to cut import rates across 100 industrial
products, including steel, petrochemicals, pharmaceuticals, and construction
materials.
Whilst
tax rates increased last year in an effort to shield local industries from
currency fluctuations, industrial import taxes are expected to drop by more than
half, from 25 per cent to 8-10 per cent.
The
cuts follow strong growth in
Firms
are beginning to realise the potential of tapping into this huge market, the
office said. Vietnamese products have priced well below foreign competitors,
enticing Brazilian businesses to ramp up imports and distribution, it said,
adding that bilateral trade had seen major growth over the past decade.
Two-way trade reached over US$1 billion in the first half of this year, up
31.2 per cent, while Vietnamese exports to
Despite
impressive growth, the market share of Vietnamese exports account for only
0.3 per cent of
Experts
are advising businesses to accelerate trade promotions to take full advantage
of the lower taxes.
This
year, the Vietnamese Trade Office in
Trade
is expected to reach $2 billion by the year's end, with $1 billion expected
to come from Vietnamese exports.
If
current trends continue, trade is expected to reach $5 billion during the
next five years and $8 billion by 2020.
Chu
Lai Open Economic Zone authorities should build more resident-focused
infrastructure, such as appartments, markets and schools, to attract more FDI
projects to the zone, according to its director.
Speaking
at an online seminar held yesterday in the central city of
"There
are many reasons for the decline, but lack of infrastructure is a fundamental
factor," Toan said. "Besides investing in production-related
projects, we should invest in resident-focused facilities for people working
and living in the zone."
He
said foreign businesses would hesitate to invest in the zone as it did not
have international schools, hospitals, entertainment and other
resident-focused facilities.
Planning
and Investment Vice Minister Dang Huy Dong agreed, saying that an economic
zone needed not only factories, but also accommodations for workers.
"However,
we should think twice about how much to invest, because we should not plough
lots of money into these projects and then just hope the investors come. It
would be very risky," Dong said.
Pham
Van Tai, vice director of Truong Hai Group, the country's biggest truck maker
and the largest investor in the zone, said convenient accommodation was a
vital factor for attracting investors.
"Investors
in
However,
Tai believed investment in accommodation should be carried out gradually
following the actual demand of investors to avoid risks.
According
to the Quang Nam People's Committee, after 10 years of construction and
development, the face of the first economic zone in
Investment
projects in Chu Lai Open Economic Zone have significantly contributed to the
overall development of
To
date, Chu Lai Open Economic Zone houses a total of 85 investment projects
with combined registered capital of US$1.5 billion. Of these, 56 projects
valued at over $750 million are in operation.
Investment
projects in the economic zone paid VND12.2 trillion to the local State Budget
in the 2006-2012 period, accounting for 50.67 per cent of the province's
budgetary income.
In
2012, investment projects contributed VND3.3 trillion ($160 million) and
accounted for 58.8 per cent of the province's total budgetary revenue.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 14 tháng 8, 2013
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